Late Thursday after the market closed WorleyParsons Limited (ASX: WOR) released an announcement to the ASX with two updates on their latest acquisition. How will the share price react when the market opens on Tuesday?
About Worley Parsons
WorleyParsons is a global professional services company which provides expertise in engineering, procurement and construction in the hydrocarbons, power, infrastructure, mining and minerals, and chemical sectors. They cover the full life cycle from creating new assets to sustaining and enhancing operating assets.
Acquisition of Jacobs ECR
WorleyParsons is acquiring the Energy, Chemicals and Resource (ECR) division of Jacobs Engineering Group Inc. this month. The most recent announcement indicated that the acquisition will be completed over the last weekend of April 2019, and once completed the company will employ approximately 57,600 people across 51 countries.
WorleyParsons had previously announced that the acquisition will be completed around the end of April, so this announcement isn’t a surprise. So far, investors seem to be reacting favourably to it.
On Thursday, the WorleyParsons share price closed 1.25% higher.
Name Change
Arguably, the bigger news in the announcement was the name change for WorleyParsons, which will change its name to Worley following the acquisition. The website will be changed to Worley.com and, subject to shareholder approval, WorleyParsons Limited will become Worley Limited following the annual general meeting in October.
The reason for the change is not clearly stated in the announcement, but the company did also release its new logo. The logo now includes the words energy, chemicals and resources under Worley to acknowledge the acquisition of Jacobs ECR.
Are Worley Shares A Buy?
There wasn’t a lot of new information in the announcement to influence the share price, but this rebrand might be the start of something different for WorleyParsons. For the moment, I’ll be watching on the sidelines to see if the acquisition brings about the benefits that the company is hoping for.
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Disclaimer: At the time of writing, Max does not own shares in any of the companies mentioned.
